PAPA JOHN'S INTL INC (PZZA) Stock Fundamental Analysis
USA - NASDAQ:PZZA - US6988131024 - Common Stock
41.1 USD
+0.39 (+0.96%)
41.05 USD
-0.05 (-0.12%)
PZZA gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 132 industry peers in the Hotels, Restaurants & Leisure industry. While PZZA is still in line with the averages on profitability rating, there are concerns on its financial health. PZZA has a decent growth rate and is not valued too expensively. PZZA also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
PZZA had positive earnings in the past year.
PZZA had a positive operating cash flow in the past year.
Each year in the past 5 years PZZA has been profitable.
PZZA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of PZZA (4.23%) is better than 62.12% of its industry peers.
The Return On Invested Capital of PZZA (15.12%) is better than 84.09% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PZZA is significantly above the industry average of 10.74%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.23% | ||
| ROE | N/A | ||
| ROIC | 15.12% |
ROA(3y)8.86%
ROA(5y)6.36%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)19.1%
ROIC(5y)18.49%
1.3 Margins
PZZA's Profit Margin of 1.79% is in line compared to the rest of the industry. PZZA outperforms 42.42% of its industry peers.
PZZA's Profit Margin has improved in the last couple of years.
PZZA has a Operating Margin of 5.41%. This is in the lower half of the industry: PZZA underperforms 62.12% of its industry peers.
PZZA's Operating Margin has improved in the last couple of years.
PZZA has a worse Gross Margin (26.62%) than 78.79% of its industry peers.
PZZA's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.41% | ||
| PM (TTM) | 1.79% | ||
| GM | 26.62% |
OM growth 3Y-6.37%
OM growth 5Y42.55%
PM growth 3Y174.07%
PM growth 5YN/A
GM growth 3Y-3.81%
GM growth 5Y-0.4%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so PZZA is creating value.
The number of shares outstanding for PZZA has been increased compared to 1 year ago.
Compared to 5 years ago, PZZA has more shares outstanding
Compared to 1 year ago, PZZA has an improved debt to assets ratio.
2.2 Solvency
PZZA has an Altman-Z score of 3.68. This indicates that PZZA is financially healthy and has little risk of bankruptcy at the moment.
PZZA has a Altman-Z score of 3.68. This is amongst the best in the industry. PZZA outperforms 85.61% of its industry peers.
PZZA has a debt to FCF ratio of 9.68. This is a negative value and a sign of low solvency as PZZA would need 9.68 years to pay back of all of its debts.
The Debt to FCF ratio of PZZA (9.68) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 9.68 | ||
| Altman-Z | 3.68 |
ROIC/WACC2.01
WACC7.54%
2.3 Liquidity
PZZA has a Current Ratio of 0.87. This is a bad value and indicates that PZZA is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.87, PZZA perfoms like the industry average, outperforming 45.45% of the companies in the same industry.
A Quick Ratio of 0.76 indicates that PZZA may have some problems paying its short term obligations.
PZZA has a Quick ratio of 0.76. This is comparable to the rest of the industry: PZZA outperforms 42.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
PZZA shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -34.35%.
PZZA shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.87% yearly.
Looking at the last year, PZZA shows a decrease in Revenue. The Revenue has decreased by -0.64% in the last year.
Measured over the past years, PZZA shows a small growth in Revenue. The Revenue has been growing by 4.93% on average per year.
EPS 1Y (TTM)-34.35%
EPS 3Y-11.8%
EPS 5Y14.87%
EPS Q2Q%-25.58%
Revenue 1Y (TTM)-0.64%
Revenue growth 3Y-0.15%
Revenue growth 5Y4.93%
Sales Q2Q%0.27%
3.2 Future
PZZA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.87% yearly.
Based on estimates for the next years, PZZA will show a small growth in Revenue. The Revenue will grow by 6.01% on average per year.
EPS Next Y-25.05%
EPS Next 2Y-2.2%
EPS Next 3Y4.35%
EPS Next 5Y17.87%
Revenue Next Year2.97%
Revenue Next 2Y1.94%
Revenue Next 3Y1.99%
Revenue Next 5Y6.01%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 23.90, the valuation of PZZA can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of PZZA is on the same level as its industry peers.
PZZA's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.89.
Based on the Price/Forward Earnings ratio of 18.36, the valuation of PZZA can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PZZA indicates a somewhat cheap valuation: PZZA is cheaper than 62.12% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.59, PZZA is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.9 | ||
| Fwd PE | 18.36 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PZZA is on the same level as its industry peers.
77.27% of the companies in the same industry are more expensive than PZZA, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.99 | ||
| EV/EBITDA | 10.82 |
4.3 Compensation for Growth
PZZA has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.61
EPS Next 2Y-2.2%
EPS Next 3Y4.35%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.52%, PZZA is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.55, PZZA pays a better dividend. On top of this PZZA pays more dividend than 92.42% of the companies listed in the same industry.
PZZA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.52% |
5.2 History
The dividend of PZZA is nicely growing with an annual growth rate of 8.81%!
PZZA has paid a dividend for at least 10 years, which is a reliable track record.
PZZA has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)8.81%
Div Incr Years4
Div Non Decr Years11
5.3 Sustainability
163.20% of the earnings are spent on dividend by PZZA. This is not a sustainable payout ratio.
PZZA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP163.2%
EPS Next 2Y-2.2%
EPS Next 3Y4.35%
41.1
+0.39 (+0.96%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Services
GICS IndustryHotels, Restaurants & Leisure
Earnings (Last)
Earnings (Next)
Inst Owners112.39%
Inst Owner Change0.84%
Ins Owners1.1%
Ins Owner Change0.63%
Market Cap1.35B
Revenue(TTM)2.09B
Net Income(TTM)37.38M
Analysts73.91
Price Target52.85 (28.59%)
Short Float %10.67%
Short Ratio2.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.52% |
Yearly Dividend1.86
Dividend Growth(5Y)8.81%
DP163.2%
Div Incr Years4
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.56%
Min EPS beat(2)-22.66%
Max EPS beat(2)21.54%
EPS beat(4)3
Avg EPS beat(4)5.78%
Min EPS beat(4)-22.66%
Max EPS beat(4)24.17%
EPS beat(8)6
Avg EPS beat(8)9.02%
EPS beat(12)7
Avg EPS beat(12)5.3%
EPS beat(16)8
Avg EPS beat(16)3.07%
Revenue beat(2)1
Avg Revenue beat(2)-2.18%
Min Revenue beat(2)-4.89%
Max Revenue beat(2)0.53%
Revenue beat(4)2
Avg Revenue beat(4)-1.14%
Min Revenue beat(4)-4.89%
Max Revenue beat(4)0.85%
Revenue beat(8)2
Avg Revenue beat(8)-2.45%
Revenue beat(12)2
Avg Revenue beat(12)-2.73%
Revenue beat(16)2
Avg Revenue beat(16)-2.57%
PT rev (1m)-0.7%
PT rev (3m)7.72%
EPS NQ rev (1m)-20.1%
EPS NQ rev (3m)-22.93%
EPS NY rev (1m)-1.55%
EPS NY rev (3m)0.8%
Revenue NQ rev (1m)-2.34%
Revenue NQ rev (3m)-3.53%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.9 | ||
| Fwd PE | 18.36 | ||
| P/S | 0.65 | ||
| P/FCF | 16.99 | ||
| P/OCF | 8.58 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.82 |
EPS(TTM)1.72
EY4.18%
EPS(NY)2.24
Fwd EY5.45%
FCF(TTM)2.42
FCFY5.89%
OCF(TTM)4.79
OCFY11.66%
SpS63.69
BVpS-13.41
TBVpS-15.47
PEG (NY)N/A
PEG (5Y)1.61
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.23% | ||
| ROE | N/A | ||
| ROCE | 19.69% | ||
| ROIC | 15.12% | ||
| ROICexc | 16.23% | ||
| ROICexgc | 18.57% | ||
| OM | 5.41% | ||
| PM (TTM) | 1.79% | ||
| GM | 26.62% | ||
| FCFM | 3.8% |
ROA(3y)8.86%
ROA(5y)6.36%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)19.1%
ROIC(5y)18.49%
ROICexc(3y)20.56%
ROICexc(5y)20.67%
ROICexgc(3y)23.77%
ROICexgc(5y)24.21%
ROCE(3y)24.87%
ROCE(5y)24.07%
ROICexgc growth 3Y-9.79%
ROICexgc growth 5Y44.21%
ROICexc growth 3Y-9.04%
ROICexc growth 5Y45.25%
OM growth 3Y-6.37%
OM growth 5Y42.55%
PM growth 3Y174.07%
PM growth 5YN/A
GM growth 3Y-3.81%
GM growth 5Y-0.4%
F-Score6
Asset Turnover2.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 9.68 | ||
| Debt/EBITDA | 3.94 | ||
| Cap/Depr | 98.38% | ||
| Cap/Sales | 3.72% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 81.82% | ||
| Profit Quality | 212.08% | ||
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z | 3.68 |
F-Score6
WACC7.54%
ROIC/WACC2.01
Cap/Depr(3y)124.88%
Cap/Depr(5y)117.36%
Cap/Sales(3y)3.61%
Cap/Sales(5y)3.22%
Profit Quality(3y)80.41%
Profit Quality(5y)690.68%
High Growth Momentum
Growth
EPS 1Y (TTM)-34.35%
EPS 3Y-11.8%
EPS 5Y14.87%
EPS Q2Q%-25.58%
EPS Next Y-25.05%
EPS Next 2Y-2.2%
EPS Next 3Y4.35%
EPS Next 5Y17.87%
Revenue 1Y (TTM)-0.64%
Revenue growth 3Y-0.15%
Revenue growth 5Y4.93%
Sales Q2Q%0.27%
Revenue Next Year2.97%
Revenue Next 2Y1.94%
Revenue Next 3Y1.99%
Revenue Next 5Y6.01%
EBIT growth 1Y-28.28%
EBIT growth 3Y-6.51%
EBIT growth 5Y49.57%
EBIT Next Year43.01%
EBIT Next 3Y17.52%
EBIT Next 5Y19.41%
FCF growth 1Y-9.22%
FCF growth 3Y-33.5%
FCF growth 5Y7.27%
OCF growth 1Y-6.69%
OCF growth 3Y-16.73%
OCF growth 5Y11.55%
PAPA JOHN'S INTL INC / PZZA FAQ
What is the fundamental rating for PZZA stock?
ChartMill assigns a fundamental rating of 5 / 10 to PZZA.
What is the valuation status of PAPA JOHN'S INTL INC (PZZA) stock?
ChartMill assigns a valuation rating of 4 / 10 to PAPA JOHN'S INTL INC (PZZA). This can be considered as Fairly Valued.
What is the profitability of PZZA stock?
PAPA JOHN'S INTL INC (PZZA) has a profitability rating of 6 / 10.
What are the PE and PB ratios of PAPA JOHN'S INTL INC (PZZA) stock?
The Price/Earnings (PE) ratio for PAPA JOHN'S INTL INC (PZZA) is 23.9 and the Price/Book (PB) ratio is -3.06.
How financially healthy is PAPA JOHN'S INTL INC?
The financial health rating of PAPA JOHN'S INTL INC (PZZA) is 3 / 10.